Global growth: a world of difference
Hear from Marcel Fenez, Global leader, Entertainment and Media, on the global growth picture for entertainment and media
Global spending on entertainment and media (E&M) rose 4.9 percent in 2011 - a little faster than the 4.5 percent increase in 2010, but still below gains in previous growth years. This reflected a hoped-for pickup in economic momentum that did not materialize consistently around the globe, and we expect E&M growth to continue to lag nominal GDP growth, principally because of the ongoing shift from higher-priced physical distribution to lower-priced digital distribution. During the next five years, we project that E&M spending will grow at a 5.7 percent compound annual rate to $2.1 trillion.
This global growth figure masks the segment and geography stories that the Outlook's extensive datasets and analysis bring to life. Below are just a few snapshots of the tipping points the industry is currently undergoing by geography and spending category. Visit the Segment insights page for the segments story.
Global digital/non-digital spending
Digital spending continues to drive growth: During the next five years, digital spending will increase at a 12.1 percent CAGR compared with just 2.8 percent for non-digital spending. 67 percent of total E&M spending growth to 2016 will be generated by digital.
China passes Germany in 2011: Thirteen countries in 2011 had E&M spending above $25 billion, led by the United States at $464 billion. China passed Germany in 2011 to become the third largest E&M market in the world. Brazil overtook South Korea in 2011 and during the next five years will pass Canada and Italy to become the seventh largest market.
Top five E&M markets in 2016
Territory growth stories vary widely: A number of countries in Asia and Latin America, along with MENA, South Africa and Russia, will average double-digit annual increases to 2016. By contrast, we expect Japan, Germany, Ireland, Denmark, Spain and Greece to grow at less than 3 percent CAGR, and less than 3.5 per cent in the UK, Italy, France, Austria, the Netherlands and Switzerland.
Fastest growth markets to 2016
Largest markets for consumer/end-user spending: Of the countries with more than $10 billion in consumer/end-user spending in 2011, the fastest-growing through 2016 will be China at a CAGR of 9.9 percent, followed by India and Brazil, both at 9.0 percent. The US will continue to dominate consumer spending through 2016.
Largest consumer spending markets
Fastest growing major advertising markets: Of the world's 13 largest advertising markets, the fastest-growing through 2016 will be China at 14.6 percent CAGR, Russia and Indonesia, both at 13.1 percent CAGR, and Brazil at 9.0 percent.
Top seven fastest growing major advertising markets
To find out more about segment-specific growth stories, visit the segment insights pages.